This application for supplemental funding proposes to extend the work on Consequences of Cost Containment Policies for Mental health Services. The new research will build on results thus far obtained indicating that indigency among psychiatric inpatients is considerable more wide spread than among medical-surgical patients. We will examine factors contributing to the willingness of general hospitals to provide care to indigent psychiatric patients. Key factors to be studied include: hospital financial status, Hill- Burton obligations, medicaid benefit structure, the availability of public mental hospital care, indigent care financing program and cost containment policies. This will be accomplished by specification and estimation of econometic models of hospital provisions of care to indigent psychiatric patients. Data from four states (New York, maryland, Florida, California) will be used for the years 1980-1985. In addition, a national data set for 1985 will be analyzed in order to take advantage of variation in the medicaid program and state indigent care financing policies.